Payroll and Salary Deductions: The Basics

If you have never really looked at your payslip or perhaps it's your first job and the first time you have looked at a payslip, it is worth spending a few minutes getting to know what the different deductions and payroll details are. Understanding your payslip and payroll deductions allows you to identify potential errors and know what to do when mistakes are made so you can claim back any overpaid tax. The guides below are easy to read and designed to provide a basic understanding of payslip and payroll deductions.

Related Calculations and Tools

Pay Slip Example

A simple payslip example for an annual salary of £172,060.00. A quick tool that allows you to compare your own payslip. Select specific months to see how your future payslips will look including total earnings and deductions. Useful for understanding your total income and deductions for financial planning such as mortgage calculation or loan affordability etc.

Salary illustration for a normal PAYE employee earning £ 0.00 gross income per year. This Tax calculation assumes you are single, have the full personal tax allowance for 2017/18 Tax Year with no disabilities and you are not repaying a student loan etc. You can edit your tax illustration by using our advanced salary and tax calculators below to provide a more bespoke tax calculation relevant to your individual circumstances.

Salary example for an individual on a Gross income of £ 172,060.00 using the Salary Calculator 2017/18 updated for the 2017/18 Tax year

Have you ever thought about how your earnings affect your benefits and credits tax credits? What benefits can you claim when earning £ 172,060.00 for example? If you want to make the most efficient use of your money and manage your finances it is important that you know and understand the different benefit and tax thresholds. Understand benefit thresholds and discover what you can do with your earning in this interesting article on how to legally pay less tax and discusses tax avoidance and tax evasion.

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